New Bern Mall’s future bright as other malls decline

By Eddie Fitzgerald and Margaret Fisher, Halifax Media Services

Published: Thursday, February 6, 2014 at 04:13 PM.

“By 1960 there were 4,500 malls accounting for 14 percent of retail sales,” according to the Association for Consumer Research. “By 1975 there were 16,400 shopping centers accounting for 33 percent of retail sales. In 1987, there were 30,000 malls accounting for over 50 percent of all retail dollars spent (about 676 billion dollars, 8 percent of the labor force, and 13 percent of our gross national product.”

Early on, mall competition was primarily downtown, once the main shopping artery. But by the 1990s, malls began competing with one another.

Fast forward and about a third of the malls have either closed or are “dying,” while another third — the largest and newest — are doing well.

A number of factors contributed to the decline. High-end stores began moving out, highway building nearly ceased so mall development stopped and suburban baby boomer teenagers — prime mall customers — grew up.

While the economic crash in 2008 is, no doubt, a factor, an article at theinternational.org website states another contributor — the popularity of the internet.

“A lot of towns were never really meant to have a mall in the first place,” said mall historian Jack Thomas of deadmalls.com. “It’s just that developers went crazy with the mall idea back in the ’80s and every town had a mall, whether they needed it or not, and now what we’re starting to see is the malls that were always meant to be good, they’re still fresh.”

New Bern Mall and Kinston’s Vernon Park Mall are only about 40 miles apart, but they are a world apart commercially.

New Bern Mall, built in 1979 when it was called Twin Rivers Mall (the old sign still stands at the entrance), has seen the addition of new stores and has undergone significant remodeling in recent years.

“We’ve been a success in New Bern by creating that tenant mix,” said Coles Hull, marketing manager for Hull Storey Gibson, which owns New Bern Mall. “We have strong anchors (like J.C. Penney, Sears and Belk) and T.J. Maxx and Michaels and now we have Buffalo Wild Wings, which is great for the community.”

Over in Lenoir County, Vernon Park Mall, which opened in 1970, has seen a decline and continues to struggle as Hallmark, Barnes Jewelers and Chick-fil-A recently pulled out and J.C. Penney plans to leave in May.

Kinston’s Vernon Park Mall is not the only mall in the country, or the state, that is struggling with how to increase retail operations and customer traffic.

The rise of indoor malls

Indoor malls flourished since they were conceived in the 1950s, and they began cropping up in nearly every city.

“By 1960 there were 4,500 malls accounting for 14 percent of retail sales,” according to the Association for Consumer Research. “By 1975 there were 16,400 shopping centers accounting for 33 percent of retail sales. In 1987, there were 30,000 malls accounting for over 50 percent of all retail dollars spent (about 676 billion dollars, 8 percent of the labor force, and 13 percent of our gross national product.”

Early on, mall competition was primarily downtown, once the main shopping artery. But by the 1990s, malls began competing with one another.

Fast forward and about a third of the malls have either closed or are “dying,” while another third — the largest and newest — are doing well.

A number of factors contributed to the decline. High-end stores began moving out, highway building nearly ceased so mall development stopped and suburban baby boomer teenagers — prime mall customers — grew up.

While the economic crash in 2008 is, no doubt, a factor, an article at theinternational.org website states another contributor — the popularity of the internet.

“A lot of towns were never really meant to have a mall in the first place,” said mall historian Jack Thomas of deadmalls.com. “It’s just that developers went crazy with the mall idea back in the ’80s and every town had a mall, whether they needed it or not, and now what we’re starting to see is the malls that were always meant to be good, they’re still fresh.”

New Bern Mall

While many malls that have been around since the 1970s are seeing fewer shoppers as more people flock to big box retailers, New Bern Mall has been successful in recent years.

Hull said it takes many things to make a mall successful, and she thinks they have found the right combination in New Bern.

“New Bern is a great city,” she said. “The mall is in a great location that is highly visible and it is surrounded by other retails. We have dedicated teams that make sure the mall is run smoothly and that we are approaching the right tenants.”

Hull said the tenants are important to a mall and you have to find the right balance of national and small shops and attractive dining.

The company freshened up New Bern Mall’s appearance several years ago inside and out. After losing a book store, the mall has since enjoyed new openings and declining vacancies.

“We believe in enclosed malls,” she said. “They provide a unique shopping venue. They are fully air conditioned and protected from the elements. People can come inside and shop from store to store and sit down in a fully equipped restaurant. They (malls) are an important part of every community or city.

“We have a pretty good momentum going. When we brought Buffalo Wild Wings in, it was a great addition. The mall now has full service, sit-down restaurants for people of all ages.”

Annabelle’s and Big Apple Pizza also are near the mall entrance.

Mattress Firm coming

Hull announced Thursday a new tenant, Mattress Firm, has agreed to move to the New Bern Mall’s outlying parcel facing Dr. Martin Luther King Jr. Boulevard where the U.S. Cellular building was demolished.

“Mattress Firm is a strong national retailer and we are excited for the new store to join the growing lineup of retailers and restaurants at the New Bern Mall,” Hull said.

Hull said there could be an announcement soon of an additional tenant planning to move to another of the mall’s outparcels.

Area residents have noticed the activity. Beth Nelson of Fairfield Harbour said if she lived closer she would come to New Bern Mall more. She was walking through the mall Thursday with her husband, Kurt.

“I like it better than not having anything, especially now with so many more stores,” she said. “I don’t have to go to Jacksonville.”

While walking through the mall for exercise, Nelson said she sometimes shops or gets her nails done at the salon.

“We’ve lived here for sevens years and it has grown,” she said.

Steve Frazzetta, co-owner of the Java Junction at the entrance of the mall, said there are more stores and more foot traffic in the mall now than there used to be. His small business has been in the mall for 11 years, he said.

When Buffalo Wild Wings moved in last year, it created spillover customers for Java Junction, he said.

“I think it is all positive,” he said. “They do a great business there, and we get the run off from them. It is mostly a young crowd and we appreciate them being here.”

Frazzetta said he is pleased by the uptick in activity.

“These owners have done a great job,” he said. “They have invested a lot of money and they are bringing in more tenants.”

Hull is optimistic about the longterm viability of the New Bern Mall.

“I’m very positive about the future of the mall in New Bern,” she said. “We do have a high occupancy rate. There are a few vacancies here and there, but we are working to find tenants to fill those vacancies. The mall is a vibrant mall full of great shopping and dining options.”